Budget Resolutions

Debate between Richard Holden and Iqbal Mohamed

Monday 1st December 2025 Commons Chamber

[Mr Holden]

My right hon. Friend has made an extremely important point. These taxes are hitting across the board, and they are hitting the employment of his constituents. That is on top of the tax rises that we saw last year: the changes in business property relief, business rates and agricultural property relief, and the national insurance tax rises. It is hammering working families up and down the country, while the Government pretend that it is not.

How on earth can the Secretary of State claim that this Budget will keep inflation down? Every policy choice that the Government make fires costs straight back into the system. It is happening with policy after policy, as if some giant socialist Gatling gun were spraying costs on to businesses, passengers, taxpayers and, indeed, the entire country.

[Iqbal Mohamed]

Will the right hon. Gentleman give way?

[Mr Holden]

I am afraid that I have no time to give way further.

Do the Government not understand that every time they hike up taxes, the cost of food goes up? Do they not understand that an indiscriminate tax hike means that the cost to the producer rises, the cost of getting the food to the shops rises, and the cost to the supermarket selling the food rises? It is a conveyor belt of wholly avoidable costs.

That brings me to the core of my argument. What are this Government actually for? Disposable incomes have been revised down, along with growth, while taxes, inflation and business rates are all up. What else is up? The number of entrepreneurs leaving the country. We thought it would be capital flight—in fact, that is what the Treasury was briefing out: real worries about capital flight—but it is not just capital flight; it is entrepreneurial flight. It is labour fleeing the country as well. People are leaving. The only thing left is land, and the Government are taxing that as well.

My right hon. Friend the Member for Salisbury made a very good point in his speech. He said that he had never seen such speculation ahead of a Budget that had worried family businesses—family businesses in his constituency and in mine. I have never known a Budget to be talked about as much as this Budget was in advance of its production. It is quite incredible. The economy is being harmed just by the briefing put out by the Government. They were doing it on the Prime Minister’s own plane. It is unbelievable.

However, it is not just small businesses that are being affected. We hear today that Zipcar, which is important to a great many people in London, will be closing its operations from the end of the year. That will have a huge impact, and it is happening because of the taxes on the company and the congestion charge imposed by the Mayor of London.

My hon. Friend the Member for Isle of Wight East (Joe Robertson) made a good point earlier when he said that, once upon a time, Labour talked of being the party of a hand up, not a handout. Well, Labour is now, quite clearly, the party with its hand in the pocket of working Britain. The hon. Member for Leeds East (Richard Burgon), the hon. Member for Salford (Rebecca Long Bailey) and my hon. Friend the Member for Bridgwater (Sir Ashley Fox) all made the same point; they are not normally on the same page, but they were today. They pointed out that it would be working people paying the price for those extra tax rises, because of thresholds that are frozen year after year owing to decisions made by this Labour Government.

The Government are not on the side of motor manufacturing either. Real concerns have been expressed by that sector, as was pointed out by the hon. Member for Brentford and Isleworth (Ruth Cadbury), the hon. Member for Ellesmere Port and Bromborough (Justin Madders), and my hon. Friend the Member for Hinckley and Bosworth (Dr Evans). How on earth, as the hon. Member for South Antrim (Robin Swann) asked earlier, will a pay-per-mile scheme work when people are crossing the border? Is the Labour party really going to tax people for driving on foreign roads? We shall have to see.

The hon. Member for Buckingham and Bletchley (Callum Anderson) made a very sensible point when he said that fiscal prudence was a means to an end. It is a means to the end of getting debt interest down, and keeping borrowing rates for businesses and families down. That is exactly right, but we did not see it from this Government. They think that people will not notice, but the Chancellor determinedly obfuscated about the figures. She talked of a black hole imposed on her, but in truth, taxes on working people are rising to pay for more welfare.

The Government think that people will not notice that they are being bribed with their own money, taken from them via the tax on electric vehicles and energy. They think that small businesses will not notice business rates going up, or national insurance taxes going up. But people have noticed. They have noticed the broken promises on tax, on working people and on bills. They have noticed the smoke and mirrors. The Government are robbing Peter, but not to pay Paul; they are robbing Paul too. People were worried ahead of the Budget this year, and now they are worried about what the third Labour Budget next year will deliver, because they know that this failing Government will be coming back for more.